Quantitative Trading Strategies: Harnessing the Power of Quantitative Techniques to Create a Winning Trading Program (Google eBook)
There are numerous trading strategies available for today's for the active traders, and every trader, to be successful, needs a strategy that works for him or her. While the many trading strategies can be quite helpful, they are also full of shortcomings and dangerous pitfalls for the uninitiated. Quantitative Trading Systems takes the reader through the development and evaluation stages of some of the most popular technical trading strategies. The book concludes with the creation of a complete trading program for stocks, futures, and other markets. The author's focus is on the use of rigorous mathematical and statistical methods to improve trading performance. The author quantifies - again using rigorous mathematics - all the subjective decisions in the trading process: from the definition of trading rules to the evaluation of trading performance. Quantitative Trading Strategies is divided into two parts. Part I details the structural foundation for creating and evaluating technical trading systems - from the role of statistics to evaluating performance to optimizing parameters and filters. Part II applies this foundation to create profitable technical trading strategies.; Topics covered include: The pioneering work of quantitative traders such as Welles Wilder and Thomas DeMark; Why markets are not efficient, based on several academic studies; Detailed performance summaries of trading strategies and how they fared in 30 futures markets, 20 stocks, and 25 relative markets; Dissecting current strategies - what works and what doesn't; But this book is more than just testing strategies. The author goes much further. Using rigorous quantitative techniques, he debunks many popular misconceptions found in many technical trading books. The author has done exhaustive testing of strategies in 75 different markets, backing up his testing with academic research where appropriate. He also introduces the concept of using technical trading strategies in markets that aren't normally conducive to technical trading: yield curve markets, equity volatility, stock indices, and more. In addition, he creates and presents twelve new trading strategies (including programming code) based on his quantitative research and shows how to create your own systems that can be applied to any market.